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Strength Seen in Helmerich & Payne (HP): Can Its 14.6% Jump Turn into More Strength?

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Helmerich & Payne (HP) shares rallied 14.6% in the last trading session to close at $43.94. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 25.5% loss over the past four weeks.

Helmerich & Payne stock ended sharply higher on Friday, driven by optimism over oil prices spurred by curbs on Russia, plus a demand spike owing to the reopening of economies and a rebound in activity. The steady increase in crude prices to over $100 a barrel has pushed energy activity higher and contributed to the strength in Helmerich & Payne, which provides drilling services to the oil producers.

This oil and gas well-drilling contractor is expected to post quarterly earnings of $0.05 per share in its upcoming report, which represents a year-over-year change of +108.8%. Revenues are expected to be $513.34 million, up 54.5% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Helmerich & Payne, the consensus EPS estimate for the quarter has been revised 31.4% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HP going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

Helmerich & Payne is part of the Zacks Oil and Gas - Drilling industry. Nabors Industries (NBR), another stock in the same industry, closed the last trading session 11% higher at $134.28. NBR has returned -26.1% in the past month.

For Nabors , the consensus EPS estimate for the upcoming report has changed +0.6% over the past month to -$6.83. This represents a change of +62.1% from what the company reported a year ago. Nabors currently has a Zacks Rank of #3 (Hold).


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